Though the market's up modestly as of right now, the overall uptrend has been slowing.... perhaps hinting that September's usual weakness will materialize this time around as well. Several tickers, though, appear to be headed into trade-worthy scenarios. Those charts include MasTec, Inc. (MTZ), Hansen Natural Corporation (HANS), Oilsands Quest, Inc. (BQI), and Dana Holding Corporation (DAN). Here's a better look at what each chart is saying.
It's taken a while to fully develop, but
Hansen Natural Corporation (
HANS) looks like it's finally in a new uptrend after a very tough second quarter. It's been a volatile ride since making the July low of $27.90, but a string of higher lows is starting to develop a support line.
Just as compelling is the fact that the bears had an opportunity to knock HANS off its perch again - but didn't - following a huge bullish gap in early August (that followed a very decisive move lower over the two days before the jump). Hansen Natural Corporation pulled back a little, but now its clear the buyers are looking to buy on those dips.
Our checkpoint target for HANS is resistance at $37.00, though in all fairness, Hansen Natural Corporation has much more potential than that.
At first glance,
Dana Holding Corporation (
DAN) may seem like it's in a perfectly fine uptrend... having just been through a small corrective move (from $5.78 to $4.58) after a strong rally. Take a closer look at the chart though.
While Dana Holding Corporation shares have rebounded up to the current price of $5.14, there's a major lack of volume behind the bounce. Moreover, the selling volume behind the dip from two weeks ago wasn't exactly mild. Factor in the gap DAN made at $3.63 back in July, and you've got a lot of cards stacked against the stock.
It wouldn't be out of the question to see Dana Holding Corporation shares slide all the way back to support at $1.25.
-------------------------------------------
Sign-up for Free to Receive Future Commentary and
Trading Alerts for HANS, BQI, MTZ, and DAN.-------------------------------------------
We knew
MasTec, Inc. (
MTZ) was finding support around $9.17; the stock's tested that low without falling under it three times since July. The problem was, MTZ shares had been unable to actually do anything more than just
not sink any lower. That is, until now.
Over the last three days, MasTec, Inc. share shave managed to break above a major resistance line. Now that the hurdle has been topped, MTZ should have a much easier time of rallying. And, if the chart's history is any clue, MasTec could run all the way up to $15.91 before hitting a headwind. May's high of $14.00 would be a good checkpoint target though.
The only pitfall we see with the MTZ chart is thin volume -
so far - behind the bullish effort.
There's a lot going on with the chart of
Oilsands Quest, Inc. (
BQI). Most of it's bullish, though there are still some big barriers to worry about... particularly for longer-term holders.
The upside for Oilsands Quest shares is twofold. A minor resistance line around 96 cents is under attack once again. Though not yet surpassed, the persistent effort is compelling. That horizontal ceiling, however, is also (roughly) the midway point for a trading range we've seen formed by BQI over the last several months. Getting and staying above it would be a huge deal.
Simultaneously, Oilsands Quest has been working its way into the tip of a pretty symmetrical wedge shape; the stock's been pushing off the lower edge of that triangle for a few weeks now.
At the very least, we feel BQI is going to make a move to the upper edge of the pennant shape (currently at $1.26). Longer-term, getting above the ceiling at $1.37 would put Oilsands Quest on a recovery path to last year's highs of $6.00.
If you'd like to know when or if we issue trading alerts specifically for BQI, MTZ, DAN, and HANS, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.
